PRESIDENT: To establish political and economic stability in the Middle East It is essential that a peace treaty be nego. tiated between Israel and the neighboring Arab States. To this end agreement on the following issues is basic: 1. The problem of the Arab refugees should be resolved by permitting a limited number to resettle in Israel. and by offering equitable compensation to all of them for property lost or left behind. Resettlement of the refugess. both of those who return to Israel and of those who decide not to return. should be facilitated by an international loan administered through a United Nations agency. 2. Definitive borders between Israel and its neighbors should be established straightening the lines between the borders recommended by the United Nations in 1947 and those established by the armistice agreements of 1948. 3.
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